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Creditors may be particularly interested in indicators of liquidity, because they show the ability of a company to quickly generate the money to pay the outstanding debt

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14y ago

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Related Questions

The most liquid asset is?

Money


Which of these is the most liquid asset?

The least liquid asset that most people have is their house.


Money is the most liquid asset available because?

it has intrinsic value


Which is the more liquid asset?

money


What is least liquid current asset?

The least liquid asset that most people have is their house.


Why is cash an asset?

Balance sheet is always maintained as most liquid asset at the top, so as the cash is the most liquid asset of business that;s why it is shown right at the top before all other less liquid assets.


Is a mortgage considered a liquid asset?

No, a mortgage is not considered a liquid asset. It is a liability, as it represents money owed to a lender for a property purchase. Liquid assets are typically cash or assets that can be easily converted into cash.


Is land a liquid or non liquid asset?

is land a liquid asset


Are sundry debtors a liquid asset?

liquid asset


Is asset is cash?

Cash is an asset because it is the most liquid asset that is owned by a company that can be used to paid expenses or current liabilities.


Why is cash so important?

Because it is the most liquid asset


What is liquidity of a savings account?

Liquidity is a term used to signify how easily an asset or an investment can be converted into cash. Obviously cash is the most liquid investment or asset. Real Estate could be the least liquid because finding a prospective buyer for a home will take a long time. The money in a Savings account is extremely liquid. The account holder can withdraw his money anytime he wants.